More bad news for South Carolina's 1950s economic development strategy: intolerance is becoming an employment issue

In a competition for its corporate headquarters relo, defense contractor Northrup Grumman is finding state discrimination based on sexual orientation is becoming an issue. Northrup is taking bids from DC- which recently approved marriage equality- gay-friendly Maryland; and Virginia, where a hard-right governor made one of his first official acts revoking discrimination protections granted to state employees.A Maryland state senator summed up the issue in terms of how a state attracts young, socially tolerant knowledge workers:

"Here in Maryland, we value our gay and lesbian citizens as part of a diverse population that makes the state strong," Madaleno wrote. "Virginia is doing the opposite and letting its LGBT citizens -- and those considering whether to move and work there -- know that they and their families are unwelcome second-class citizens. And they are counting on corporations like yours not to care."

The Los Angeles-based company is currently deciding between Virginia, Maryland and the District as a new home for its 300 top executives, running an unusually public contest among the three.